The Europe-China trade relationship: deficits, disputes and de-risking

When Donald Trump took office as US president for the second time in January 2025, many people anticipated trade ties between the European Union (EU) and China to grow closer. The reality has been more complex. As the world’s third-largest economy, the EU navigates choppy waters between the US and China, while facing a widening trade imbalance with China and increasingly assertive Chinese trade measures. The EU seeks to “de-risk” as trade talks with China remain stiff and trade disputes between the European bloc and China remain unsolved. What are the core issues at stake and where is this vital partnership heading?